Rental property depreciation percentage

Forum|Forum|4 years ago
February 13, 2022
1 reply
8 views

If the cost of the building is 100,000, but only 50% of the house was used for rental, how should I input them? Can I enter the 100,000 as a depreciation base and enter 50% somewhere(I can't find where), or do I need to calculate and input 50,000 instead? (Proconnect tax)

ProConnect Tax

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George4Tacks

Level 15

How do I enter the percentage of ownership for rental or royal property?

Go to the Input Return tab.
On the left-side menu, select Income.
Choose Rental and Royalty Income (Sch E) from the dropdown menu.
Scroll down to the Other Information section.
Enter the percentage in the Percentage of ownership if not 100% (.xxxx) field.

You can also enter a Percentage of business use (.xxxx) on assets in the Depreciation screen. However, you shouldn't use these two fields together, as this will cause an inaccurate reduction of rental income and expenses.

Answers are easy. Questions are hard!

L

lihe0402Author

Level 3

Thank you for the answer! It looks like proconnect cannot compute the percentage though? If I enter 50% ownership or tenant occupancy, and the total cost 100,000, the generated schedule E form still shows 100,000, not 50,000.

George4Tacks

Level 15

Yes, but the deduction on Schedule E is only 50% of the total depreciation.

You will likely be happier with the entry in Deprecation, near the bottom of the 2nd tab for Auto and Additional Information.

Answers are easy. Questions are hard!

How do I enter the percentage of ownership for rental or royal property?

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